Get Loans to Finance Your Wedding
Marriages are made in heaven, but the bills have to be paid here on Earth. Getting hitched is a huge life event and in India it is celebrated with much pomp and gaiety. Besides the hoopla that is involved in a marriage it is a dream come true for the bride, groom and their respective families. And nowadays weddings are not a one day affair there’s the pre-wedding ceremony, post-wedding ceremony, the wedding day, bachelor’s party, bridal shower and honeymoon. So it would be a sin to compromise on the wedding budget for the lack of finance. However, one need not wait for the right time and have the right finance to tie the knot. One need not procrastinate a wedding merely for the lack of finance because nowadays many banks and NBFCs are offering marriage or wedding loans.
Couples and families leave no stone unturned when it comes to a wedding and knowing this financial institutes offer customized loans at low interest rates. However, as people have multiple options to choose a wedding loan, it is best to understand a few things before applying for the one suited for you.
Know about Marriage Loans
Marriage loans are basically personal loans. An individual can apply for a personal loan and specify the reason for loan availed as marriage. Fintech companies including RupeeCircle offer customized wedding loans based on different specifications.
Rates and fees
Usually banks levy a high interest rate on personal loans taken for marriage besides its high processing fees. And since this is an unsecured loan the interest rates may start at 16-18% and go as high as 24-30%. The processing fee levied is usually 2-5% of the loan, excluding tax. Banks also check an individual’s credit score, creditworthiness, repayment history and income before disbursing loans and fixing an interest rate. For lesser interest rates and processing fees a loan applicant can approach a P2P lending firm.
Individuals should inform their loan agents about the feasible repayment amount and tenure before the agency approves the loan. The exact date of repayment and EMI amount should be chosen only after careful deliberation to ensure convenient repayment.
Marriage is a union of two individuals or families so why should only one party bear the entire financial burden. Today’s youth follow this mantra and hence Fintech companies offer joint loan facilities to the couple (although, technically any 2 people can be co-applicants). Joint loans affect the credit score of both the applicants and hence it is the mutual responsibility to repay EMIs in a timely manner. But on the plus side joint applicants may get higher loan amount approved at a lower interest rate based on their earning capacity.
The foreclosure procedure and charges of many banks are untenable compared to Fintech P2P companies. Many banks only allow for foreclosure after 6 months to one year of lock-in period and levy a charge of 5%. Many P2P lending firms have no foreclosure charges and minimal lock-in period.